Federal Loan Eligibility

U.S. Citizens, permanent residents, and eligible non-citizens may apply for federal student loans through the Federal Direct Loan program (DL) .  Students need to be enrolled on at least a half time basis (18 units or more) as a regular degree-seeking student. Continuing students must meet the academic progress guidelines of their program of study to be eligible for any type of federal financial aid.

Federal Perkins Loan

Federal Direct Unsubsidized Loan

Federal Direct Grad PLUS Loan

Addison H. Gibson Foundation Loan Trust

Alternative (non-federal) Loans

Ombudsman Information

Federal Perkins Loans

The Perkins Loan program is a federal loan program that provides low interest (5%) loans to students who demonstrate exceptional financial need. No interest accrues on the loan while the student is enrolled on at least a half-time basis, during the nine month grace period, and during periods of deferment. Repayment begins nine months after the student graduates or is no longer enrolled on at least a half time basis. Perkins loans are administered through Heinz College and funds are limited; highest consideration is given to applicants who complete the financial aid application process by the suggested deadline. A separate loan application is not required but students must complete a Perkins Loan Promissory Note and Federal Perkins Loan Entrance Counseling (separate from Federal Direct Loan Promissory Notes and Entrance Counseling). Continuing students must meet satisfactory academic progress requirements in order to be eligible for federal Perkins Loans.

Federal Direct Unsubsidized Loans

The Federal Direct Unsubsidized Stafford Loan is similar to the Federal Direct Subsidized Stafford loan, except the interest for the unsubsidized loan is not paid by the federal government during in-school, grace, and deferment periods. Borrowers may make quarterly interest payments or have the interest capitalized at the time of repayment. Eligible graduate students may borrow a combined maximum total of $20,500 every two semesters from the Subsidized and Unsubsidized Federal Direct Loan programs. The interest rate, fees, loan term, academic progress requirements and repayment information is the same as stated above for the subsidized loan.

Interest Rate	Loan Origination Fee	Repayment Incentive
fixed interest rate of 6.8%	1%	.25% interest reduction for use of electronic debit account for repayment

Federal Direct Grad PLUS Loans

The Federal Direct Grad PLUS Loan allows eligible students to borrow up to the published cost of attendance less financial aid from all other sources.  Borrowers are required to pass a basic credit test. Students who are denied the loan because of adverse credit history, may obtain an endorser. The interest rate is fixed at 7.9%, which begins accruing upon disbursement.

Borrowers are charged an origination fee deducted from the loan amount at disbursement. The loan term may be one or more semesters in length and the loan disburses equally for each semester included in the loan period. Repayment begins when the loan is fully disbursed, however if the student is enrolled on at least a half-time basis, the loan enters in-school deferment status until the student graduates or drops below half-time status.

Interest Rate	Loan Origination Fee	Repayment Incentive
fixed interest rate of 7.9%	4%	.25% interest reduction for use of electronic debit account for repayment

The Addison H. Gibson Foundation Loan Trust (for long-term PA residents)

The Addison H. Gibson Foundation provides low interest education loans to long term (approx. 10 year) PA residents who are U.S. citizens and in their second year (or 3rd semester) of their graduate program.

Alternative (non-federal) Loans

Alternative education loans (also called private or non-federal education loans) may be available to students who do not qualify for federal loans, or to students who wish to borrow alternative loans in lieu of federal loans. It is important to note that there is no income limit on borrowing some types of federal education loans, therefore, eligible borrowers are always encouraged to review and understand the costs, loan features and benefits of federal student loans and compare those costs and benefits to those of alternative loans before choosing to borrow non-federal loans.

The interest rates on alternative education loans may be variable or fixed and the credit requirements, loan terms, loan fees, applicable grace period, application requirements, in-school payment requirements, etc. vary from lender to lender.

The maximum eligibility for alternative education loans is the average cost of attendance less financial aid from all sources. Individual lenders may have additional limits on the amount of alternative education loans that a student may borrow.

Students may choose any alternative education loan lender they wish. Students who need help in selecting a lender may refer to our Alternative Lender List.  Our list includes only those lenders who disbursed loans to Carnegie Mellon University on behalf of a Heinz College student in any of the past 5 years.

Carnegie Mellon’s Lender Relationship Code of Conduct

Ombudsman Information

If you have a problem with your loans that you believe has not been fully resolved by the Heinz College Financial Aid Office, please contact the Office of Student Financial Aid Ombudsman. The OSFA Ombudsman will informally investigate borrowers’ complaints. Although they do not have the authority to reverse decisions, they can offer solutions and work to bring about changes to prevent future problems. The easiest way to contact the Ombudsman is to file an on-line assistance request thru www.ombudsman.ed.gov.   

Other contact options are:

Mail:

Office of the Ombudsman

US Department of Education

Fourth Floor (UCP-3/MS 5144 830)

First Street NE

Washington, DC 20202-5144

Phone Toll Free:  1-877-557-2575

 TDD:  202-377-3800

E-Mail:  fsaombudsmanoffice@ed.gov